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The True Cost of Waiting to Buy


The True Cost of Waiting to Buy


It’s one thing to be told that you shouldn’t wait to buy real estate because it’s going to cost you more. It’s another to see it in actual numbers. I thought it might be helpful to give you some concrete numbers as to why waiting to buy isn’t going to pay off. These numbers are based on the average sale prices for condos and Summit county Colorado from 2021 to 2022.

At the end I’m going to give you A little forecast into 2023 to convince you to not wait from this year to next year. So the average Condo in Summit county in 2021 was 515,000. At this point in 2022 the average condo is $635,000. In addition to the home and price increase. We’ve also had interest rates go up a full percent, $674 if short term renting your property is important to you.

That equates to another 3-4 nights per month that you have to rent. To cash flow the same amount of money you would be able to if you had bought last year. Now going forward into 2023, Let’s be conservative and say that we only see 10% appreciation. That means that same condo would be $698,000 and we’re already projecting another 1% increase on secondary home purchases. That means that that same condo from this year to next year will cost an additional $565 dollars per month which means that compared to if you bought it in 2021 if you buy in 2023, you need to rent six more nights per month on average to cash flow the exact same.

Whether you’re just buying a vacation home to keep for yourself or you’re buying one and it’s important to you that it’s cash flows, the sooner you buy, the more affordable that property will be and the more money it will make you in the long run.

If you really want to have your eyes open, if we translate those numbers from condos to single family homes in Breckenridge, a single family home averaged 1.3 million in 2021 and at this point in 2022 were up to 1.6 million.

With that interest rate increase That means a mortgage on that home. All of these mortgages are run at 20% down and would cost you an extra $1700 dollars a month. That’s the same that the mortgage on that condo costs. So again, the sooner you buy, the better the investment will be for you.

Why should you care that I’m the one who’s telling you these numbers? I’m Betsy Repaske and I’m a realtor here in Breckenridge in Summit County Colorado. I’m also a former Airbnb owner myself. So I know how important the purchase price equates to the ability of a property to cash flow if you have any questions, I’m always here.

My contact information is below and you can find me on social @BetsyRepaske, just like it says wherever you’re reading this, because my name is the same on all of the channels.